Question

mr lippman bought a dryer for 160 bucks and sold it for 240 bucks. if overhead expenses were 20% of the selling price, what was the rate of profit on the selling price?

Answer 1

First calculate the amount of overhead expenses. The selling price was $240. To find 20% of 240, multiply 240 by 0.20, which equals 48. From that, we found that the overhead expenses were $48. To find the rate of profit, take the selling price and subtract all expenses. We know that Mr Lippman's selling price was $240, he spent $160 to buy the dryer, and he had $48 worth of overhead expenses. 240 - 160 - 48 = 32. Therefore, the profit was $32. To find the rate of profit, divide the profit by the total expenses. 32 / (240 + 160) = 0.08. Therefore, the rate of profit was 8%.